01837cam a22002777 4500001000700000003000500007005001700012008004100029100002200070245011700092260006600209490004200275500002000317520060900337530006100946538007201007538003601079690005401115690007001169690010501239700002101344710004201365830007701407856003801484856003701522w12516NBER20180319223445.0180319s2006 mau||||fs|||| 000 0 eng d1 aBaldwin, Richard.10aGravity for Dummies and Dummies for Gravity Equationsh[electronic resource] /cRichard Baldwin, Daria Taglioni. aCambridge, Mass.bNational Bureau of Economic Researchc2006.1 aNBER working paper seriesvno. w12516 aSeptember 2006.3 aThis paper provides a minimalist derivation of the gravity equation and uses it to identify three common errors in the literature, what we call the gold, silver and bronze medal errors. The paper provides estimates of the size of the biases taking the currency union trade effect as an example. We generalize Anderson-Van Wincoop's multilateral trade resistance factor (which only works with cross section data) to allow for panel data and then show that it can be dealt with using time-varying country dummies with omitted determinants of bilateral trade being dealt with by time-invariant pair dummies. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aF1 - Trade2Journal of Economic Literature class. 7aF3 - International Finance2Journal of Economic Literature class. 7aF4 - Macroeconomic Aspects of International Trade and Finance2Journal of Economic Literature class.1 aTaglioni, Daria.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w12516.4 uhttp://www.nber.org/papers/w1251641uhttp://dx.doi.org/10.3386/w12516